Intro to Business-Chapter 1

Tangible products you can purchase to meet your wants and needs are called goods. 

• true
• false

When you decide to buy a jacket instead of a concert ticket, you are making a trade-off

• true
• false

Capitalism is another name for a traditional economic system. 

• true
• false

Competition forces businesses to search for new ways to satisfy customers’ wants and needs

• true
• false

The market price for a product is the point where demand exceeds supply. 

• true
• false

The basic economic problem is

• having unlimited wants and needs but limited economic resources
• deciding what goods and services to produce
• identifying the goods and services available to you
• determining how to satisfy needs and wants.

An important principle of the U.S. economic system is 

• the right to private property
•  the freedom of choice
• competition
• all of the above

If freezing weather damages orange crops in Florida

• the demand for oranges will decrease 
•  the price of oranges will increase
• the supply of oranges will remain unchanged
•  the price of orange juice will decrease.

Water, air, and minerals are examples of

• consumer resources
• natural resources
• human resources
• capital resources

If you decide to purchase a DVD of your favorite movie instead of a pair of jeans, the value of the jeans is the

• market price 
• profit
•  opportunity cost
• trade-off price